- Chinese Dec Caixin manu PMI down from 48.6 to 48.2 vs. 48.9 forecast
- New Zealand hit by 5.1 magnitude earthquake
- Japanese final manu PMI upgraded from 52.5 to 52.6 in Dec
- Australian Dec commodity prices down 23.3% y/y , -21.8% previous
The comdolls were off to a rough start this forex trading week, as downbeat Chinese PMI and falling commodity prices hit the newswires.
Chinese Caixin manu PMI – In contrast to the government data released last week, the Caixin version of the Chinese manufacturing PMI indicated a sharper contraction for December. The index slipped from 48.6 to 48.2 during the month instead of improving to the projected 48.9 reading.
Chinese equity slide – Following the release of the downbeat Caixin PMI data, the Chinese stock market chalked up a sharp selloff, with the China A50 equity index down by more than 5% for the day. Sound familiar? Better read up on how the Chinese stock market slump affected financial markets last year.
Australian commodity prices – Not much of a surprise here considering how commodity prices suffered a bloodbath towards the end of last year. For the month of December, commodity prices were down 23.3% compared to the same period in 2014, following the 21.8% decline recorded in the previous month.
Major Currency Movers:
AUD & NZD – Unfortunately for the Aussie, the downbeat Chinese PMI, falling equities, the drop in commodity prices turned out to be a triple-whammy. The selloff also carried over to the Kiwi because of New Zealand’s close trade ties to the Land Down Under.
AUD/USD is down 66 pips to .7219 (-0.90%), AUD/JPY is down 145 pips to 86.13 (-1.65%), NZD/USD is down 84 pips to .6759 (-1.23%), NZD/JPY is down 136 pips to 80.67 (-1.66%), and AUD/NZD is up 16 pips to 1.0678 (+0.15%).
USD – Talk about a manic Monday! The Greenback scored some pips on the early rout of risk aversion but gave back most of these intraday gains to the European currencies.
EUR/USD dipped to a low of 1.0824 then climbed back above 1.0900 (+0.15%), GBP/USD found support around the 1.4700 handle and is up 10 pips to 1.4743 (+0.06%), and USD/CHF popped up to a high of 1.0246 then retreated to .9943 (-0.51%).
- 8:00 am GMT: German preliminary CPI (0.2% expected, 0.1% previous)
- 8:15 am GMT: Spanish manufacturing PMI (53.1 expected, 53.1 previous)
- 9:30 am GMT: U.K. manufacturing PMI (52.8 expected, 52.7 previous)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!